The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2020. 1. 2. Sales for May are expected to be $960,000. Sales in June and July are expected to be 5% higher than the preceding month. Cost of goods sold is expected to be 75% of sales. Company policy is to maintain ending merchandise inventory at 10% of the following month's cost of goods sold. Operating expenses are estimated to be as follows: 3. 4. Sales salaries Advertising Delivery expense Sales commissions Rent expense Depreciation Utilities Insurance $31.500 per month 6 % of monthly sales 2 % of monthly sales 5 % of monthly sales $5.630 per month $910 per month $620 per month $520 per month 5. Interest expense is $2,000 per month. Income taxes are estimated to be 30% of income before income taxes. SUPPAR COMPANY San Miguel Store Budgeted Income Statement For the Months of May and June, 2020: May June Sales $ $ Cost of Goods Sold Beginning inventory Ending Inventory Gross Profit Less: Operating Expenses Sales Salaries Advertising Delivery Sales Salaries Advertising Delivery Sales Commissions Sales Salaries Advertising Delivery Sales Commissions Rent Depreciation Utilities Insurance Total Operating Expenses Income from Operations Interest Expense Income Before Income Taxes Income Tax Expense Net Income /(Loss) $ $